Summary: The Special Assets department handles loans that are out of compliance and in trouble. Lenders assign loans to this department to mitigate potential losses. This change marks a turning point in your relationship with the lender, as they likely want to exit the lending relationship. A company can improve its chances of success in […]
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Asset-Based Loans – Costs and Rates Explained (Small Business)
Asset-based loans (ABLs) are a type of financing that enables companies to get funding based on their assets. These loans are popular among small and midsize businesses because they offer simpler qualification and compliance requirements. While asset-based loans are more expensive than conventional bank financing, they are cheaper than most other solutions. This article discusses […]
What is a Ledgered Line of Credit? How Does it Work?
Summary: A ledgered line of credit is a type of asset-based financing that enables companies to draw up to 85% of their Accounts Receivable (A/R). Ledgered lines are more flexible, easier to use, and simpler to manage than comparable solutions. This article explains how ledgered lines work, their advantages, qualification requirements, and how they compare […]
Factoring for Auto Transport Companies and Car Haulers
Summary: Auto haulers frequently have trouble finding a factoring company that can work with them. Unfortunately, many factoring companies cannot finance auto haulers due to the risk of cargo damage, claims, and other issues. This article explains how freight factoring works, why auto transport companies are challenging to finance, and how to find a factoring […]
Trucking Insurance Basics for Owner Operators and Small Fleets
Starting a company as an Independent owner-operator can be difficult. The industry has a number of complex requirements that owners need to comply with at all times. One of the more confusing and expensive issues they deal with is insurance. This article provides a simple explanation of the industry and its products. It prepares you […]
How to Offer Net-30 Terms Effectively
Summary: Waiting 30, 45, or even 60 days to get an invoice paid is a challenge for many business owners. Small companies often have to wait for payment because their commercial sales are made on credit. This type of trade credit is commonly known as “payment terms.” Companies must offer payment terms because their clients […]
Construction Factoring vs. Factoring: Key Differences
Construction factoring is a specialized type of invoice factoring adapted to work in the construction industry. It is very similar to invoice factoring, though it has some key differences. This article covers the main differences between both programs. It helps construction subcontractors determine if construction factoring is right for them. Read “What is construction factoring? […]
What is Construction Factoring? How Does it Work?
Construction factoring is a specialized type of invoice factoring adapted to work in the construction industry. It helps subcontractors improve their cash flow by financing their net 30/60 invoices from commercial clients and General Contractors (GC). This article explains how construction factoring helps you, how it works, its advantages, and its limitations. The article will […]
Factoring Cost vs. Rates (They are Different)
Summary: To a large extent, business owners think that factoring rates, factoring fees, and the factoring cost of a dollar are all the same. Although they are related, there are important differences. Actually, low factoring rates may translate to lower fees, but may not necessarily translate to lower costs per advanced dollar. This article helps […]
Factoring and Term Loans: A PO Financing Alternative
One of the greatest challenges for a small business is being able to fulfill large purchase orders. Small companies often lack the funds to pay suppliers and other expenses associated with large orders. Most companies try to use financing – when it is available – to solve this problem. One common option is purchase order […]